Just a few years ago, Alakh Pandey was a popular YouTube teacher streaming physics lectures from his room in Prayagraj. Today, his company PhysicsWallah is in the final day of its ₹3,480-crore initial public offering, a moment that could redefine how investors view India’s education sector.
For decades, education ventures have struggled to sustain success in public markets. Names like Educomp and MT Educare once promised a revolution but eventually collapsed under the weight of poor economics and aggressive expansion. Pandey’s challenge now is to prove that PhysicsWallah can be different.
Founded in 2020 with co-founder Prateek Maheshwari, PhysicsWallah has grown from a YouTube channel into one of India’s most profitable edtech companies. With revenues of ₹3,039 crore in FY25, up 51% year-on-year, the company serves over 4 million paying users and operates 200 offline centres across the country. Its model is built on affordable courses, often priced 10 times lower than rivals, and a loyal teacher-led community.
Analysts say the company’s financial discipline sets it apart. While peers such as Byju’s and Unacademy chased valuation-driven growth, PhysicsWallah stayed cash-positive for most of its journey, relying on organic reach and word-of-mouth marketing. Still, challenges loom. Marketing costs are expected to rise as the company expands into South India, where brand recall remains limited.
The IPO, which closes today, has seen subdued investor response so far. Overall subscription stood at 0.25 times as of mid-day on Thursday. The issue was subscribed 0.86 times in the retail category, 0.07 times in QIB (ex-anchor), and 0.16 times in NII.
If demand improves in the final hours, the issue could still see a decent finish, though sentiment so far suggests investors are approaching India’s newest ed-tech listing with caution.
PhysicsWallah’s IPO Marks a Turning Point for India’s EdTech Industry
